May 22, (THEWILL) — Wema Bank Plc has received an upgrade in its long-term rating from ‘A-’ to ‘A’ by Agusto & Co, reflecting the bank’s improved profitability, stronger liquidity position, and sustained shareholder support.
The rating agency also affirmed the bank’s short-term rating at ‘A1’, according to its 2026 condensed entity rating report.
The upgrade follows Wema Bank’s successful capital raising exercise, which increased its capital base above the N200 billion regulatory minimum required for commercial banks with national authorisation.
According to Agusto & Co, the rating action was driven by the bank’s enhanced earnings performance, sound liquidity profile, and improved capitalisation amid Nigeria’s challenging macroeconomic environment.
“Agusto & Co upgrades the ratings assigned to Wema Bank Plc (‘Wema Bank’ or ‘the Bank’) from ‘A-’ to ‘A’ (long term) and affirms the ‘A1’ (short term) rating,” the agency stated.
“The ratings upgrade is anchored on the improved profitability, good liquidity profile, and strong shareholders’ support as reflected in the successful capital raising exercise,” it added.
The agency noted that the strengthened capital position provides Wema Bank with a stronger buffer to support business growth, absorb potential shocks, and align with evolving regulatory requirements in the banking sector.
Despite the positive rating action, Agusto & Co highlighted rising impaired loans and persistent macroeconomic pressures as key downside risks to the bank’s outlook.
The agency also pointed to the challenging operating environment characterised by elevated inflation, exchange rate volatility, and high interest rates, which continue to pressure asset quality across the banking industry.
However, Agusto & Co maintained a stable outlook on the bank, reflecting expectations that Wema Bank will sustain its profitability momentum, liquidity strength, and capital adequacy position over the medium term.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
